When you look for a job in Germany, you must know what salary you should get. This helps you negotiate a better salary.
Salaries by profession
These tools help you find how much you should earn.
- Office of Statistics salary calculator (in German) – Find salaries by job title.
- Glassdoor and Kununu – Find salaries by job title. You need an account.
- Gehalt.de (in German) – find salaries by job title
- Levels.fyi – IT salaries
- Startup salary survey – Yearly survey by BerlinStartupJobs
- Developer salaries in Germany (2021) – Honeypot.io
- Salaries in Berlin – longer article by Settle in Berlin
Rates for freelancers
- Income survey for solo freelancers (in German) – over 7,000 respondents
- Software developer rates in Berlin
Taxes in Germany
When you negotiate your salary, you negotiate your gross income. The amount you keep after taxes is your net income.
In Germany, you pay around 35% of your salary in taxes and social contributions.1 Your employer takes them directly from your paycheck.
Health insurance
Your
You pay a bit more for
Base cost
Total
You are covered by your spouse's health insurance.
You are covered by your parents' health insurance.
You are covered by your health insurance in another EU country.
Public pension
Your employer pays
You pay
Unemployment insurance
Your employer pays
You pay
Income tax
This is the
Taxable income
Income tax rate
Solidarity surcharge
If you pay more than
Solidarity surcharge is {{ formatPercent(taxes.solidarity.milderungszoneRate * 100) }} of all
The solidarity surcharge is {{ formatPercent(taxes.solidarity.maxRate * 100) }} of your
Church tax
Your church collects a
Your income is too low to pay income tax, so you don't pay church tax.
You pay {{ formatPercent(100 - disposableIncomeRatio) }}
This is what you pay for all taxes and social contributions. They take this from your paycheck.
You keep {{ formatPercent(disposableIncomeRatio) }}
This is your
You pay these taxes and contributions:
Minimum wage and median income
Median income
The median household income in Germany is 42,192€ per year. In Berlin, it’s 43,572€ per year.2 This is only for households with working people. The median income per person is much lower: 2,109€ per month.6 The median income for immigrants is lower.
Compare your income (German) – Enter your Netto income, see how it compares to what other people earn.
Median income by profession (German) – Federal Employment Office
Median income by location (German) – Federal Employment Office
Minimum wage
The minimum wage (Mindestlohn) in Germany is 12€ per hour.3 After October 1, it will be 12€ per hour. Some professions have a higher minimum wage (Branchenmindestlohn).
Around 4% of jobs pay the minimum wage.4
Cost of living
Your salary should match the local cost of living. Salaries in Munich are higher than in Berlin, but living in Munich is more expensive. Salaries in Berlin are lower than in New York, but life in Berlin is cheaper than in New York.
Before you negotiate your salary, look at the cost of living in your area.
Bonuses
Yearly bonus
Some employers pay a yearly bonus (13. Monatsgehalt). It’s usually in your work contract.5 You pay income tax on this bonus.
Relocation bonus
Some companies offer a relocation bonus. This helps you pay for your relocation costs. You can also negotiate this amount. Sometimes, it’s a fixed amount, and sometimes they refund your real costs. Sometimes, you get your relocation bonus with your first paycheck, 30 to 45 days after you start working. You pay income tax on your relocation bonus.
When you get a job offer, you can negotiate a bigger relocation bonus.
If you don’t get a relocation bonus, your relocation are still tax-deductible. – More information
When do I get paid?
In Germany, most people are paid once per month, usually on the 1st or 15th day of the month. You get your first paycheck after 30 or 45 days after you start working. If you are just moving to Germany, you need enough savings to survive the first 6 weeks.
Almost everyone is paid by bank transfer. If you start working in Germany, you need a bank account that supports SEPA transfers. Your bank can be in another European country.
Sources and footnotes
-
Arbeitsagentur, focus.de (2020), bz-berlin.de (2020) ⤴